In his presentation (and in our Metro North America report), Bruce Katz outlined a three-part playbook for how sub-national leaders are acting to further trade, investment, and economic growth in our three countries:
Set a vision. City and metropolitan leaders are setting bold visions for the future of their economies that can focus public, private, and civic sector actors on shared goals for growth. Mayor Smith outlined his cityâ€™s new mantra: Educate, Innovate, Facilitate, Elevate. His economic development agenda is focused around strengthening Mesaâ€™s assets in healthcare, education, aerospace, and tourism (HEAT), and working together with partners in the Maricopa Association of Governments and the Greater Phoenix Economic Council to create and execute a metropolitan business plan . Taking greater advantage of the regionâ€™s already strong ties with cities and states in Mexico is an important part of those visions.
Invest in what matters. The factors that drive city and regional growth are innovation, human capital, and infrastructure. The quality of those assets, regardless of the sector in which they are applied, account for long-run economic success. Windsor, Ontario Mayor Eddie Francis described how the downturn in the auto industry in the late 2000s threatened tens of thousands of workers in his city, a major North American auto hub just across the border from Detroit. Recognizing this, the city and region invested in helping auto suppliers transition into the aerospace industry, taking advantage of workers with widely applicable manufacturing skills and excess plant capacity to diversify the economy towards a sector with growing opportunities. Working with the University of Windsor to develop a new aerospace engineering program, the region has succeeded in attracting thousands of new aircraft maintenance, repair, and operations (MRO) jobs. Even the universityâ€™s automotive research programAUTO21 has become a key partner in bolstering the regionâ€™s emerging aerospace cluster.
Network globally. The capstone of the GCI-Mexico forum was the signing of a new agreement by mayors Miguel Ãngel Mancera of Mexico City and Rahm Emanuel of Chicago to partner together on strategies to grow the economies of both cities. While â€œsister citiesâ€ agreements have existed for some timeâ€”and Chicago alone has 28 of them, focused mainly on cultural exchangeâ€”the new agreement aims to take the citiesâ€™ already-strong relationship in an explicitly economic direction, exploring joint opportunities for foreign direct investment, export promotion, and increased tourism. As Mayor Emanuel described during a discussion with Mayor Mancera moderated by JPMorgan Chase Executive Vice President Peter Scher, Chicago is acting boldly because the city cannot be held hostage to the functioning (or dysfunction) of its state and national governments. And Mayor Mancera noted that even given the progress being achieved today at the national level in Mexico, mayors are ultimately co-responsible for generating local and regional growth and prosperity.
Poverty has often been considered an inner city problem or a small town and rural problem, but the face of poverty is shifting in America. Communities that were once economically solid are now experiencing rising rates of economic distress.
Alan Berube, senior fellow and deputy director of Brookingâ€™s Metropolitan Program and Peter Edelman, faculty director, Center on Poverty, Inequality, and Public Policy, Georgetown Law School, discussed suburban poverty at APAâ€™s recent Federal Policy & Program Briefing.
Together with coauthor Elizabeth Kneebone, Berube has examined the phenomenon in Confronting Suburban Poverty in America (Brookings Press, 2013).
Peter Edelman has worked in anti-poverty programs and researched this subject for many years. According to Edelman, suburban poverty has been growing gradually, but has accelerated in the early 21st century: â€œPeople who once did all right are not doing all right now.â€
What makes poverty in the suburbs especially challenging? The concentration of poverty exacerbates the problem and the trend is toward more concentration.
Overall, Edelman said, 15 percent of Americans live in poverty but the in counties south of Washington, D.C., the rate is as much as 28 percent. In addition, the options for commuting to jobs are fewer in many suburbs than in urban areas. Further, the social services to assist people in need may not be well established in suburban communities.
The problem is becoming more complex, therefore the solution has to be to think in terms of a regional economy.
Part of the complexity is that â€œwe have become a nation of low-wage economyâ€ said Edelman. The median income for Americans has been stuck at around $34,000 for 40 years. Many, many Americans are not moving up the ladder and obtaining better pay. And, it is becoming increasingly difficult to sustain a family on this income.
Single mothers with children â€” the most vulnerable â€” make up 42 percent of the poor.